Monday, August 12, 2013

USDA Preview

Monday is set for some action in the grains and oilseeds with the monthly WASDE report.

Much of the focus as ever will be on ending stocks.

Traders have been looking for a huge corn crop this year with the number expected to be increased from last month on the back of some ideal growing conditions.

But with a large net short position, should stocks match expectation there is a chance of some short covering.

In soybeans traders are looking for a slightly reduced ending stocks number. This one should be reasonably straight forward.

Finally in wheat there is some chance of a number coming in marginally below expectation. There has been a recent surge in Chinese demand as well as increased production from around the world that could very well fuel a bullish rally.

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